SBA 7(a) Loans
At Greater Commercial Lending, we make it easy to access SBA 7(a) loans and get the financing you need to start, run or expand your small business.
What is a SBA 7(a) Loan?
An SBA 7(a) loan is a type of small business loan that is partially guaranteed by the Small Business Administration (SBA) to provide the financial assistance small businesses need to start, operate or expand a business. A 7(a) loan offers businesses flexible loan terms, high maximum loan amounts and enables small businesses to finance a variety of needs, making it one of the most popular loans from the SBA.
SBA 7(a) loans are available for the purchase of real estate, construction and materials required for a new build or tenant improvements on your leased space. Additional uses can be to establish a new business or purchase an existing business, as well as purchase equipment, machinery, furniture, fixtures, supplies or inventory. Working capital is another use of the loan which will help your business operate during the start up phase, growth or transition as well as refinance eligible business debt to improve cash flow.
A Greater Commercial Lending SBA specialist will walk you through the various financing options and work with you to ensure you get the business loan that’s right for you.
SBA 7(a) Loan Rates, Fees, and Terms
SBA 7a loan fees consist mainly of the SBA guarantee fee, which is based on the loan amount and maturity of the loan for which you are applying. Fees on loans of less than $500,000 are 0% and SBA Express loans to veteran owned businesses also have a 0% guarantee fee.
Loan Amounts
Finance between $5,000 and $5,000,000 with a 50 – 85% SBA guarantee.
Fees
A guarantee fee of 0.55 – 3.75% is collected depending on the amount of the loan. Down payment is 10 – 20% and collateral along with personal guarantees will be required.
Interest Rates
SBA loan rates are based on Wall Street Journal Prime plus a margin. These interest rates are variable monthly or quarterly depending on the type of loan and loan amount.
Repayment Terms
The maximum maturity rate is 10 years for most business uses and 25 years for real estate.
Types of SBA 7(a) Loans
There are several SBA 7(a) loan types to choose from depending on the needs of your small business. Let our loan experts help you determine which type of SBA loan you need and assist you throughout the loan application process.
Standard 7(a) Loan
Start, operate or expand a business with a SBA 7(a) loan perfectly suited to your business needs with financing up to $5,000,000.
7(a) Small Loan
7(a) Small Loans are similar to a Standard 7(a) Loans but with a lower maximum financing amount of $500,000 and difference in the collateral requirements.
7(a) Express Loan
Get a response to your loan application within 36 hours, finance up to $500,000 and access funds within 90 days.
7(a) Export Express Loan
Accelerate your Export loan application and finance up to $500,000 to fund export transactions.
7(a) Export Working Capital Program (EWCP) Loan
Fund export transactions with an EWCP loan up to $5,000,000.
7(a) International Trade Loan
Enter or expand into international markets with up to $5,000,000 in financing.
7(a) Community Advantage (CA) Loans
The SBA launched the CA loan program to assist small businesses in underserved markets with financing up to $350,000.
7(a) CAPLines of Credit
Meet short-term and cyclical working-capital needs with a Seasonal CAPLine, Contract CAPLine, Builders CAPLine, or Working CAPLine.
SBA 7(a) Loan Requirements
Small business owners eligible for SBA-guaranteed small business loans must meet SBA requirements.
Small Business
Eligible SBA 7(a) applicants must meet small business size standards as defined by the SBA.
For-Profit Business
Small businesses eligible for SBA 7(a) must be legally registered for-profit business that sells a product or service with the goal of making money.
Engaged in U.S. Business
SBA 7(a) small business loans are designed to support U.S. business owners who are engaged in business in the United States or its possessions.
Credit Requirements
Eligible small businesses must demonstrate the ability to repay the loan, have reasonable invested equity and not be delinquent on any federal loans.
Demonstrated Need for Loan
SBA 7(a) loans are available to eligible small businesses that have used alternative financial resources prior to seeking SBA assistance and are unable to qualify for similar credit elsewhere.
Frequently Asked Questions About SBA 7(a) Loans
If you have questions about the SBA 7(a) loan that we haven’t answered, please contact us to speak with one of our SBA lending experts.
What is the difference between a SBA 7(a) loan and an SBA 504 loan program?
Interest rates: An SBA 7(a) loan has predominantly variable rates with some fixed-rate options, whereas a 504 loan has fixed interest rates.
Uses: An SBA 7(a) loan can be used to finance a variety of business uses including working capital, inventory, consolidating or refinancing debt. An SBA 504 loan provides financing for major fixed assets that promote business growth and job creation; it cannot be used for working capital, inventory, consolidating or refinancing debt.
What can a SBA 7(a) loan be used for?
SBA 7(a) loans have a flexible use clause that allows a variety of business purposes. Possible uses include long-term and short-term working capital, revolving funds and refinancing debt. You can use an SBA 7(a) loan to purchase equipment, machinery, furniture, fixtures, supplies or materials. An SBA 7(a) loan can be used to purchase real estate or land and to renovate an existing building or construct a new building. SBA 7(a) loans can be used to establish a new business, purchase an existing business, expand a business or to fund the operations of an existing business.
How do I apply for a SBA 7(a) loan?
The SBA 7(a) application process is lengthy and rigorous. The process begins with a lender that can help you determine which SBA loan best meets your business needs and walk you through the loan process. We specialize in meeting the unique borrowing needs of small businesses, providing expertise and hands-on assistance throughout the SBA application process.
What other types of SBA loans are available?
We also specialize in SBA 504 loans for job creation and expansion, and SBA Veterans Advantage loans for active members of the military, veterans and their spouses.
How SBA Loans Can Help Your Business
SBA loans can be used to meet a variety of small to mid-size businesses at any stage of growth, from start-up through expansion. Depending on your business needs, you can access low-interest or fixed rate loans with 7 – 25-year repayment terms and a maximum loan amount up to $5,000,000.
Low Interest Rates and Fees
The interest rates and fees of SBA-guaranteed loans are competitive to non-guaranteed loans.
Long Repayment Terms
Pay back the funds you borrow, slowly over time with 7–25-year repayment terms.
High Maximum Loan Amount
Access between $5,000 and $5,000,000 loans depending on eligibility.